a) A post from November 8th is now an “I told you so!”
b) Everyone is out this morning jawboning markets. Assorted Fed Governors talking about QE-3 if necessary, one said $600b is a good place to start an easing program. Buffett praises government responses to financial crisis. For an alternative, hilarious and sobering take on this op-ed, go here. The government backstop, Fed put, whatever you want to call it has not gone away.
c) With all this firepower, who would want to be short for more than a quick trade here or there? I used to joke in classes that all one had to do was to find the next bubble and ride it to retirement. Little did I think then that it would be one sanctioned by global governments!!
d) Markets sat around these SPY levels for the last two weeks of October and may just do that again. If the powers that be are playing with psychology, then that would also argue for hanging around Dow 11K at least until post expiration. If you must short something, think about shorting volatility.